June 26, 2013

Wall Street Is Engaged In Spirited Debate

"Rising stock prices have combined with rising real estate prices to convince many that the economy is recovering. As a result, Wall Street is engaged in spirited debate about when the Fed will begin bringing the current era of permanent quantitative easing to an end (forgetting for now that both markets have shown their deep dependence on QE). Most agree that the QE will eventually create an economy able to stand on its own, but there is disagreement on how long it will take. The "bullish" end of the spectrum is predicting that the Fed may begin to take its foot off the accelerator by the fourth quarter of this year. The "bears" feel that sluggish data will compel the Fed to keep pouring the money on throughout 2014. They don't understand that QE is the economy, and that any attempt to exit will be met by difficulty. The rising home prices and stock gains over the last few years are likely to vanish if the punch bowl is removed." - an excerpt from the The Global Economic Realignment
Related ETFs: Financial Select Sector SPDR (XLF), SPDR Dow Jones Industrial Average ETF (DIA), SPDR SP 500 Index ETF (SPY), SPDR Gold Trust ETF (GLD)Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

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BIO

Peter David Schiff (born March 23, 1963) is an American economist, author, commentator and popular video blogger. Schiff, a licensed stock broker, is the president of Euro Pacific Capital, headquartered in Westport, Connecticut